Lexicon Pharmaceuticals vs Alphabet

Lexicon Pharmaceuticals and Alphabet (the parent company of Google) are two well-known stocks in the technology and healthcare sectors. Lexicon is a biopharmaceutical company focused on developing innovative treatments for various diseases, while Alphabet is a technology conglomerate known for its dominance in search engines, online advertising, and other tech-related services. Both companies have shown strong financial performance and growth potential, making them attractive options for investors looking to diversify their portfolios.

Lexicon Pharmaceuticals or Alphabet?

When comparing Lexicon Pharmaceuticals and Alphabet, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Lexicon Pharmaceuticals and Alphabet.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Lexicon Pharmaceuticals has a dividend yield of -%, while Alphabet has a dividend yield of 0.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lexicon Pharmaceuticals reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.81%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Lexicon Pharmaceuticals P/E ratio at -2.77 and Alphabet's P/E ratio at 23.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lexicon Pharmaceuticals P/B ratio is 2.32 while Alphabet's P/B ratio is 6.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Lexicon Pharmaceuticals has seen a 5-year revenue growth of -0.99%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lexicon Pharmaceuticals's ROE at 73.27% and Alphabet's ROE at 30.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.73 for Lexicon Pharmaceuticals and $166.05 for Alphabet. Over the past year, Lexicon Pharmaceuticals's prices ranged from $0.92 to $3.73, with a yearly change of 305.43%. Alphabet's prices fluctuated between $121.46 and $193.31, with a yearly change of 59.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.